After the two spinning top bars at the high of the upward movement on the monthly time frame and the resistance around 1.19 EUR/USD completely logically started falling. Its first stop on the way down was the 23.8% Fibo around 1.1700 – 1.1720.
I expected a little deeper correction to the upside, but the pair could not rally considerably and headed for the next Fibonacci level at 38.2% of the impulse wave from 1.04945 (10th April 2017) to 1.20924 (8th September 2017). The 38.2% level is around 1.1470.
In case the pair continues dropping we could see a deeper correction to 50% Fibo, which means a drop to around 1.1300 – 1.1290.
For now this is just a theory, the market will decide how deep the correction will be.
The scenario on the screenshot with the five impulse waves is just one of the possible scenarios, because this might not be the fourth wave and there might not be a fifth wave – there could be just waves developing in threes.